Recent developments in supervisory structures in EU and acceding countries

The institutional structure for the supervision of financial sectors has been the object of much attention in a number of EU Member States. Changes in national supervisory systems may have been triggered by important developments in the field of regulation and supervision, such as the completion of the Financial Services Action Plan and implementation of the new Capital Requirements Directive, both of which have led to enhanced responsibilities for national authorities, or to a need for a better organisation of the supervisory frameworks. Also, the increased pressure for more efficiency in conducting supervisory activities may have prompted a consolidation of supervisory structures in several Member States, which in some cases has resulted in a complete overhaul of the institutional framework. Occasionally, these changes were the object of intense debate, as they potentially affected the operational independence of the supervisory authorities.

The institutional structure for supervision in place in the Member States is of interest to the ECB in view of its obligation under Article 105(5) of the Treaty establishing the European Community to contribute to the smooth conduct of policies pursued by the competent authorities relating to the prudential supervision of credit institutions and the stability of the financial system. Moreover, the ECB must be consulted by national authorities regarding draft legislative provisions in its field of competence: legislative changes that affect the supervisory structure must thus be submitted to the ECB for an opinion (Article 105(4) of the Treaty). Against this background, it should be mentioned that on various occasions the ECB has conducted analyses of the supervisory structures in the EU, assessing the main changes occurring in national supervisory frameworks for the financial sector in the EU and the (then) acceding countries.

This note describes the current situation as regards the supervisory structures in the 25 Member States, taking into account recent developments since the last review in 2003, and draws some conclusions on the main features characterising the current structures. A detailed description of the main changes to the Member States’ supervisory frameworks, as well as a brief description of the supervisory arrangements in the two acceding countries, is presented in the Annex to this note.